Zafin has signed a definitive agreement to acquire Naehas, a Palo Alto-based provider of offer management and compliance technology. The transaction is valued at a nine-figure amount in US dollars. Zafin is a Toronto-based AI platform company for regulated institutions.
Deal terms
The purchase will be paid through a combination of equity and cash. Zafin will partially finance the acquisition with a line of credit. The deal is Zafin's first major acquisition since Nordic Capital took a majority stake in early 2024.
Company context
Zafin was founded in 2002 and helps banks move away from legacy software. It now has nearly 1,000 employees, according to its LinkedIn profile. The company says it is on track to reach US$200 million in annualized recurring revenue by the end of 2026.
What Naehas adds
Naehas provides offer management, disclosure automation, and marketing compliance technology. A company spokesperson said Naehas has about 250 employees and generates between US$30 million and US$50 million in annual revenue. The combined company is expected to serve 16 of the top 20 US banks.
The proposed acquisition is expected to close in Q4 2026. Closing remains subject to customary conditions and required regulatory approvals. Zafin and Naehas will continue to operate as independent companies until then.